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Supreme, a diversified consumer goods supplier, has acquired the trade and assets of Clearly Drinks, a manufacturer of canned and bottled spring water and soft drinks, in a £15 million deal.
The acquisition broadens Supreme's product portfolio, bringing the company's non-vape annualised sales to over £100 million – or £250 million including its vaping division.
Clearly Drinks, based in Sunderland, UK, supplies approximately 70 customers nationwide, including major UK retailers such as Waitrose, Aldi, Tesco, Sainsbury's and Farm Foods.
The company's portfolio includes still and sparkling spring water, energy drinks, vitamin-infused beverages, juices, coffee-based drinks, and mixers and tonics under brands like Perfectly Clear, Northumbria Spring and Revolution Waves.
Sandy Chadha, CEO of Supreme, said: "We're delighted to welcome the Clearly Drinks team to the Supreme family. Their high-quality products and strong brand align perfectly with our strategy to diversify and grow. We look forward to supporting the team and expanding their brand presence across the UK retail space."
The acquisition provides Supreme with a well-established operational footprint, including a 150,000-square-foot freehold site with three natural spring water boreholes capable of accessing up to 300 million litres of fresh spring water.
The facility also features a new fully automated can line capable of producing 350 million canned drinks per year.
For the year ended 31 December 2023, Clearly Drinks reported (unaudited) revenue of £22.4 million and Adjusted EBITDA of £3.0 million, with further growth anticipated for the year ending 31 December 2024.
With the acquisition, Supreme sees opportunities to leverage its vertically integrated distribution platform and expand the Clearly Drinks brand across its established customer base of supermarkets, discounters, and online retailers.
Supreme also plans to explore developing additional own-label products or licenses under well-recognised brands, replicating its success in the batteries and lighting categories.
The acquisition will further support Supreme's efforts to expand its Sports Nutrition & Wellness division by facilitating the production of wellness and energy drinks.
"The operational footprint of Clearly Drinks can benefit from Supreme's vertically integrated distribution platform, with the potential for the enlarged group to further develop sales, marketing and product innovation opportunities," the company said in a statement.
The acquisition of Clearly Drinks follows Supreme's strategy to diversify its consumer goods portfolio beyond its core vaping business. The company's product range now spans batteries, lighting, sports nutrition, wellness and branded household goods.